The purpose of Customer Relationship Marketing





According to Yim et al (2004) customer relationship marketing has 3 objectives namely:

1. Creating customer satisfaction
One of the goals of customer relationship marketing is to provide satisfaction to customers. Kotler and Armstrong (2004, p. 17) explain that customer satisfaction is "the extent to which a product's perceived performance in delivering value matches a buyer’s expectations". Winer (2001) states that there is a positive relationship between customer satisfaction and the benefits derived by the company. Based on this, the company realizes the importance of being able to meet the expectations of customers and strive to provide products or services that can provide satisfaction to customers more than what can be given by competitors.

2. Creating customer loyalty
Customer relationship marketing also aims to create customer loyalty. By implementing learning relationships, companies will increasingly be able to understand and meet the needs and desires of customers, namely: by customizing products and services to suit the needs and desires of customers. By fulfilling these needs and desires, it will make customers satisfied and eventually will be loyal to a particular brand. According to (Bohan 1998; Rust et al. 1995) quoted by Yim et al (2004) customer satisfaction is a determining factor for customers in deciding whether to continue or stop the relationship with the company. With increasing customer satisfaction, it will make customers more loyal to the company.

3. Increase profits
According to Reichheld and Sasser (1990) by retaining customers or in other words reducing customer defections, companies can increase their profits. By reducing customer defections by 5%, the company can increase profits by 85%. Therefore, retaining customers is a very important thing to do by the company, because with the longer duration of these customers can be maintained, these customers can provide large profits for the company.

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